PARIS (Reuters) - France will finish off its ambitious
biofuels program despite growing criticism over their negative
impact on the environment and food prices, the country's
transport minister said on Wednesday.

"The government has decided to finish off its program
currently under way and the factories under construction will
naturally be built," Dominique Bussereau told parliamentarians.

France is the second-largest biofuel producer in Europe
after Germany and has vowed biofuels would account 7 percent of
total fuel consumption by 2010.

Biofuels, which are seen by supporters as a way to both
boost energy security and reduce emissions of greenhouse gases,
are currently produced mainly from food crops such as grains,
oilseeds and sugar.

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Critics argue there are few, if any, environmental benefits
for so-called first generation biofuels.

They have also been blamed for boosting grain demand and
pushing up food prices at a time when there is a growing threat
of famine in some parts of the world.

"We are aware of the frantic rise in grain prices, a
problem that did not exist a few years ago, as well as the
problem of choosing to use cereals for industrial or food
purposes," Bussereau added.

French farm minister Michel Barnier said last week food
globally should take priority over biofuels but played down the
impact the French production of biofuels had on grain prices,
saying the "green fuel" only used up seven percent of French
fields.

In Europe as a whole biofuels used up 2 percent of the
bloc's cereals production.